Naira Crashes, Nigeria’s External Reserves Cross $34bn
The Nigerian naira struggled unsuccessfully across the foreign exchange markets on Thursday as spot FX rates worsened further despite growing external reserves.
Exacerbated demand for US dollar, and other foreign currency continued to weaken the naira purchasing power in the absence of Central Bank of Nigeria (CBN) FX intervention.
According to analysts, the future of the local currency remains bleak under the adoption of willing buyer, willing seller, and no support stance of the CBN.
Weak FX liquidity in the market has affected the naira ability to fight off foreign currency dominance at the official and informal FX window.
Data from the FMDQ platform for daily exchange rate quotation showed that the Naira depreciated against the US dollar by 0.15%, closing at ₦1,510.10.
Eligible demand for FX outpaced the supply side in the official window amidst divergent expectation on future exchange rates projections.
In the parallel market, the Naira depreciated slightly to N1,505 per US dollar as invisible FX demand climbed further. The nation’s external reserves crossed $34 billion yesterday due to additional inflows from various sources.
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